Monetary Authority gets enforcement powers

The Monetary Authority (Amendment) Law, 2016 gives the Cayman Islands Monetary Authority power to impose administrative fines. The law passed on Oct. 24 and was gazetted on Nov. 23 but is not yet in force. No commencement date has been set.

It is expected that the law will be effective after the consultation on the underlying regulations is closed.

The amended law empowers CIMA to impose administrative fines on licensed and regulated entities and individuals for breaches of “prescribed provisions” of the law, the money laundering regulations and “regulatory laws.”

Regulatory laws include the Banks and Trust Companies Law, the Building Societies Law, the Companies Management Law, the Cooperative Societies Law, the Insurance Law, the Money Services Law, the Mutual Funds Law, the Securities Investment Business Law, the Development Bank Law and the Directors Registration and Licensing Law.

Fines range from $5,000 to $1 million. CIMA will be able to impose cumulative fines of up to $20,000 for a single minor breach.

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